By now we’ve all seen the news that we’re going to be taking drastic measures to buy out all the bad debt that financial institutions hold. Reactions have been mixed, and I haven’t really figured out how I feel about it. On one hand, something needs to be done. On the other, I don’t have a lot of faith in this current government.
And Secretary Paulson isn’t inspiring much confidence either. You can see his interview with George Stephanopoulos yesterday, where he stammers and doesn’t appear so sure of what he’s doing.
- Paulsen (and the GOP) say we have to stabilize the system first, then figure out how we got here and how to prevent it in the future. Somehow, that seems backwards!
- Paulsen will have huge amounts of control over our financial system and over billions of dollars of our taxpayer money. He hasn’t inspired my confidence so far…and if he can’t figure out how we got here, who says he can manage money well?
- As it stands, CEO’s and executives who gambled and lost will continue to receive huge paychecks and bonuses, even though they created a huge mess!
On how we got here, this is where I have the biggest problem. We know how we got here. There have been many warnings, and many who were poo-poo’d when they warned that we were racing towards this. We not only let people buy things they didn’t have the money for, we encouraged them. More than that, we threw ‘money’ at them to do it. Only it wasn’t real money! Its like we had a giant game of Monopoly going on–with lots of paper money holding up the system. No one ever felt like anything was out of their reach. Only it all came crashing down, and every one of the taxpayers is being left holding the bag. In every single one of these failures, it all comes back to a credit crisis–one we knew was going to happen. I’ve been saying it for 10 years. So have many others. And if I can see it (I’m no financial expert), then why can’t the Treasury Secretary? Why is it that a week ago Paulsen was saying we didn’t need a buyout, but now we do? Why should we trust someone who doesn’t have a clue what is going on?
I totally agree something needs to be done. I’m not arguing that. And I’m pretty comfortable with the idea that the government should step in. Its just the logistics that make me very uneasy. This is not an administration that I trust. They do nothing to inspire confidence on a daily basis. I also want to know why we can spend a trillion dollars to help out the financial industry who made bad decisions, but helping out homeowners who were snowed by the system is out of bounds? Why? Those in the financial industry knew better. Many caught in foreclosure didn’t. Why can we help those who profited, but not those who are losing everything?
I’m also waiting for the hypocrisy. Supply-side, Reaganomics will re-emerge from this roll in the hay with socialism. And we will hear again how horrible people like FDR were, and how government ruins everything. I’m waiting for the selective memory to forget that all of this happened with a Republican, supply-side, reagonomics president in the White House.
Paging Buffet, Warren Buffet. To Capitol Hill, STAT!